Royal Mail, the UK's 360-year-old postal service, intends to hold an initial public offering of a majority stake "in the coming weeks" to help the company gain a competitive edge.

The British government announced plans for the sale yesterday without offering an estimated value for Royal Mail. While the size of the stake will depend on market conditions, Business Minister Michael Fallon said the aim is to dispose of a majority.

The sale will be the largest UK privatisation since British Rail in the 1990s.

The sell-off will be conducted with workers threatening to strike in protest. Strike action "won't stop the privatisation process," Mr Fallon said.

"There is a very generous offer on the table for Royal Mail staff," who are being offered an 8.6pc pay increase over three years and 10pc of the shares for free, he said. (Bloomberg)